Menu
 
Home | News | EWM suppliers act over unpaid millions
 
News | 10th June 2020
 

EWM suppliers act over unpaid millions

Bangladeshi manufacturers allege company owes them £27m

 
 
 

CLOTHING manufacturers in Bangladesh are threatening to halt production and deliveries to billionaire Philip Day’s Edinburgh Woollen Mill Group in a battle over an alleged £27m in unpaid bills.

About 30 suppliers to Day’s empire, which includes more than 1,000 outlets, including Peacocks, Austin Reed and Jaeger, arranged a letter from the Bangladesh Garments and Manufacturing Association trade body which accuses EWM and its agents of taking “undue advantage of the COVID-19 situation”.

They say Day’s retail group and its agents demanded hefty discounts, cancelled orders or withheld payment for goods already shipped or manufactured for the company.

The letter demands payment for goods already handed over to the company’s shipping agents by May 29 and payment by June 5 for orders which are already in production.

It says any discount requested by the retailer “beyond permissible limits” could lead to legal action.

The letter claims that demand for the discounts will be not only financially catastrophic but also expose members to various claims and liabilities from regulations, banks and other third parties which will, eventually, legally implicate the buyers themselves.

Members will have no option but to place an embargo and blacklist the buyers and their agents who do not comply with their instructions.

This will prevent them from conducting business with members in the future, either directly or indirectly.

Fiona Gooch from campaign group Traidcraft Exchange said the letter was an “unprecedented response” from manufacturers.

These companies were under severe financial pressure because wealthy British retailers were not paying up.

“There are more than tens of thousands of workers in the suppliers to Philip Day’s UK businesses and these young women and their families are at risk of becoming destitute if their wages are not paid.

“Philip Day is a billionaire, valued at £1.14bn, who can well afford to pay for what he has ordered.” Gooch said.

A spokesman for EWM Group said it had not had a chance to consider the proposals or respond.

“When this global crisis hit, we had already paid for the majority of future stock and we have since had productive discussions with individual suppliers about remaining stock,” a spokesman said.

“We have engaged with all our individual suppliers with openness, honesty and the best of intentions, even when the circumstances are difficult.

“We firmly view this to be a reasonable approach in the face of a collective and global industry challenge, which isn’t just disrupting a single link in the supply chain.

“Our discussions with most suppliers have been positive and they have understood we’re trying to find a balanced way forward which matches the immediate, urgent challenges faced by high street stores nationally and those of suppliers.”

 
 
Would you like to support us?

The Eskdale and Liddesdale Advertiser is our community owned local newspaper and even in today’s troubled times, we aim to bring you local news and articles in an impartial, responsible and factual way.

We hope you have enjoyed reading this free article but we need your support so we can keep delivering quality journalism that’s open and independent and keeps you up to date with what is happening in Eskdale and Liddesdale.

Every reader’s contribution, however big or small, is so valuable to us.
 
 
‘Owned by the Community...Published for the Community’
Do you have a story?

Please get in touch if you have a story or article you would like to see published.

Related Articles

Course to help women set up their own business comes to Liddesdale

LIDDESDALE has been chosen as one of three rural areas…

 

Eskdale COVID-19 cases second highest

Esk valley comes second only to Gretna in the whole…

 

Rail group argues its case to UK review body

Extension to Carlisle will bring economic and social benefits

 

Over 80s welcome call to receive vaccination

The most elderly in Langholm will be vaccinated from next…

 

A danner for Doddie

DODDIE Weir’s story has touched the rugby world. He played…

 

EWM is sold but not all jobs will be saved

CRITICISM has been levelled at the way Tuesday’s sale of…

 

Kerry’s passion for town lands her the dream job

THE Langholm Alliance has announced the appointment of its project…

 

A Kiwi Christmas

Langholm lass sends positive vibes from a land down under

 

More infectious virus forces new lockdown

Measures close schools and businesses as vaccine is rolled out

 

Better early warning system to be devised

Newcastleton villagers are urged to protect their own houses

 

Ploughing halted after breach of conditions

Forestry watchdog steps in to investigate the loss of deep…

 

From King Herod to the Grinch ....

A Christmas message from Rev Morag Crossan

 

Have yourself a Merry LITTLE Christmas now

It’s a Level Four lockdown from Saturday

 

Reindeer are flying

ALAN Miller’s new tartan reindeer are flying off the shelves…

 

Kevin moves to new post

But he will keep an eye on moor

 

New looms help secure Langholm mill’s future

Drove Weavers expands its capability to meet greater demand

 

Camera plan will combat the lack of police presence

Copshaw’s rural isolation adds to concerns

 

Wetter winters and more hot summers

Met Office says emissions must be cut to avoid extreme…

 

Council refuses to endorse sports centre proposals

Flood plain causes yet more planning problems

 

Amazing ceremony for wildlife watchers

Shortlisted Newcastleton group is celebrated at awards night

 

2020 Magic Lantern Show

ONE of Langholm’s theatre companies is determined to do its…

 

Langholm store marks 20 years of shopping

Co-op staff look forward to 2021 and arrival of a…

 

Vaccination roll-out is imminent: NHS chief

Immunisation of high-priority groups will start next week

 

NHS seeks input on plan

Health and social care and support are at centre of…

 

Happy 400th birthday as town marks charter

Alliance invites groups to host events in run-up to main…

 

200m high turbines for two Eskdale sites

Developer pledges £900,000 a year for nearby communities

 

Pupils’ designs are a reminder of the past

Langholm’s textile history inspires bold and striking creations

 

Non-essential trips to England are banned

First Minister announces tougher restrictions to beat the virus

 

Riverbank erosion puts A7 in danger

Residents voice their fears as three metres of banking disappear

 

Tune into Open Country broadcast

TWO historic community land buyouts have been agreed in Eskdale…

 

Cannabis oil producer given substantial grant

Langholm business to create more than 50 jobs in the…

 

EWM collapses with 750 jobs lost

About 40 staff are made redundant as administrators take over

 

Village could be the gateway to new park

Newcastleton would sit in a unique position as an attraction

 

40 jobs lost in Langholm as EWM collapses

SEVEN hundred and fifty jobs at Edinburgh Woollen Mill have…

 

EWM PLACED INTO ADMINISTRATION

Edinburgh Woollen Mill and Ponden Home have been placed into…

 

Roadmap to success is in everyone’s hands

Langholm Alliance manager says he is here to get things…

 

Historic deal to buy moor agreed

Duke will sell 5,200 acres to community for a nature…

 

Community buys Langholm Moor

SOUTHERN Scotland’s largest community buyout is set to go ahead…

 

Day earns extension to save retail empire

High Court grants EWM Group two more weeks to save…

 

Flu vaccine campaign for over 65s is on target

Eligible patients will receive a letter soon for an appointment

 
 
requires mailchimp logins and wired up to a list
Join our mailing list
Keep up to date with all that’s going on at the E&L
This site uses cookies.
Configure
 
Read our privacy policy

This site uses cookies for marketing, personalisation, and analysis purposes. You can opt out of this at any time or view our full privacy policy for more information.